Tax deed properties info needed !!! Any good expert advice?

Question

So I’ve been doing some research on this and the difference Between tax deed and tax lien certificates and the benefits and requirements needed for it and from my research (correct me if I’m wrong) Is that once I bid on your property and acquire it the mortgage gets erased. I need clarity on this BP fam thanks in advance!

Arnie Abramson · Answer

In Texas, when you buy a tax deed at the auction it extinguishes the mortgage along with the other non-governmental liens.  But as I always teach-there are no short answers in this arena.  For example, most of the properties at the tax sales in Texas do not have mortgages as mortgage foreclosures can be done faster than tax foreclosures.  When they do occur, however, he mortgage company is more likely to redeem it since they generally have more skin in the game.  In Texas that is a good thing as you would receive your cost plus 25% per year if redeemed.

Doug Phillips · Answer

This varies from state to state and often time even more so county to county; there are some liens that survive an auction so be sure to do due diligence prior to an auction.  County website and calling the county has always helped clear up things for me, but short answer yes-  to my knowledge all mortgages are extinguished after you receive the Deed to the property.

Deborah Hardin · Answer

In Arkansas, tax delinquent properties are auctioned off by the commissioner. This usually extinguishes the mortgage and non-government debts, similarly to what Arnie described.

However, there are always exceptions. It's a good idea to talk to someone familiar with the market you are looking into, before you bid or buy a property.

We frequently have consults with investors before the Arkansas auction season starts, so they will have a better idea of what to expect and what to look for. Maybe you can find someone who does this in your area.

Best of luck!

Tax deed properties info needed !!! Any good expert advice?

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